Why Bernie Madoff Would Not Work Here

In case you didn't hear, in 2008, Bernard Madoff was arrested for running
one of the largest Ponzi schemes in U.S. history. The Madoff scandal has
caused investors to be wary with their investment relationships, and
rightfully so. Outlined below are a number of important considerations
regarding how we protect client assets and how the procedures used by
Wichita Wealth Management (WWM) and the firms we work with
are different from Madoff & Company.

As an independent Registered Investment Advisory firm, Wichita
Wealth Management is regulated by the Kansas Office of the Securities
Commissioner (KOSC).
Madoff however, apparently operated as an unregulated hedge fund for
most of the time, so there was no similar regulatory oversight — at least
not until 2006. WWM submits to periodic inspections by the KOSC. Madoff
apparently never did undergo a full SEC (Securities and Exchange
Commission) audit.

WWM is not affiliated with Pershing LLC (Pershing),
the custodian who holds our clients' investments and is not affiliated
with Shareholders Service Group (SSG)
the broker/dealer who processes account paperwork and executes trades on
clients' behalf. In contrast, Madoff operated both a brokerage firm and
an advisory firm.

Based on our registration with the KOSC, WWM cannot (and does not)
have custody of clients' investment accounts, nor do we have full power
of attorney over client accounts. (We do have the ability to affect
trades in client accounts, charge advisory fees, and submit client
instructions for processing.) Madoff apparently
had more or less unimpeded control over client accounts.

SSG and Pershing are SEC registered broker/dealers. They are
regulated by the Financial Industry Regulatory Authority (FINRA), and
are registrants of the Municipal Securities Rulemaking Board (MSRB).
These regulators are different than the one that regulates WWM's
advisory business, which affords additional layers of regulatory
oversight and protection for clients. FINRA reviews SSG and Pershing's
businesses independently of any review of WWM.

By regulation, SSG and Pershing must calculate net capital on a
regular basis, and must notify FINRA and the SEC if it comes within a
set minimum of required capital. Hedge funds have no similar
requirement.

SSG clears trades through Pershing, where all of our client accounts
(except 529 college funding accounts) are held in custody. As of this
writing, Pershing has over $1 trillion in assets under custody and is
owned by Bank of New York Mellon (BNY Mellon), the largest asset
custodian in the world with over $26 trillion in assets. Because of
SSG's clearing arrangement, there are three layers of independent
control, three layers of independent regulatory oversight, and three sets
of financial reporting.

Clients receive a full statement of positions, balances, and account
activity monthly or at least quarterly from Pershing, a source that is not
affiliated with WWM or SSG. Hedge funds do not have the same
requirement.

As a member of the Securities Investors Protection Corporation (SIPC),
as of this writing, client accounts are covered by insurance protection
up to $500,000 including $250,000 for claims of cash. In addition to the
SIPC account coverage, there is excess coverage from
Lloyd's of London
to protect clients' assets up to an overall aggregate level of $1
billion for assets in custody, including up to $1.9 million in cash
awaiting reinvestment per client account. (Neither SIPC nor excess of
SIPC coverage protects against the decline in the market value of
securities or losses incurred while broker/dealer remains in business.)

SSG and Pershing undergo full financial audits annually of all
accounts and financial operations by an independent certified auditor.
Audited financial statements are filed with the SEC, FINRA and state
regulators where required.